The market has met the "falling long enough, falling too much"! The technical indicators show the bottom signal, is the bull market about to start?
The market may usher in a wave of rising prices in the next month. Considering the timing and the bull market cycle, this is likely to be the starting point of a new round of bull market. But remember, the market will come slowly and will not happen overnight.
The market has "fallen enough" and "fallen hard". Bitcoin has fallen from a high of $73,000 to $53,000, a drop of nearly 30%. In the past two years, the market has been looking forward to a bull market, so the correction is not as large as before. For example, in the second half of last year, Bitcoin only pulled back by 21%. Looking at the time, from March to July, it has adjusted for 4 months, which is long enough. Those altcoins have fallen even more miserably, generally falling by more than 80%.
Secondly, technical indicators are also sending signals. When the wave of decline in July reached 53,000, the RSI (Relative Strength Index) showed oversold, and it also formed a divergence with the previous bottom, which is a good sign. It has been proven many times in history that this is a bottom signal.
Let's talk about the real power of the market. Why is Bitcoin stronger now than in March at a similar price? Because at that time, it was all driven by ETF funds, and there were good news everywhere, but it couldn't go up after rising to 70,000, and the altcoins also peaked. Now, the German government sells coins, Mentougou pays compensation, and the US government moves BTC, all of which are bad news, and there is a lot of selling pressure. But look at Bitcoin, it has stabilized at around 67,000, this is strength!
As for the problem of insufficient bottom time, it is true that the bottom usually fluctuates for one or two months. But this time, Bitcoin started to rise after more than a week of fluctuations. I think, either 53,000 is not the real bottom, but just a rebound; or there is a rush to buy shares because the bull market is coming, so the bottom time is short. Looking at the current situation, the second possibility is more likely.
Finally, let's talk about the uncertainty of this round of rise. Because the bottom has not been shaken enough, Mentougou still has more than 80,000 BTC to be issued, and the US stock market is also at a high level, which may affect the market. But we still follow the high probability, hold 50% to 60% of the position first, and then increase the position when Bitcoin breaks through the high point of 73,000.
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